Handle. We will see where that goes. We get inventories in 30 minutes. The dollar index is under 100 today. We have stronger currencies out , including the euro. A lot of data out in britain and on the continent overnight. Of course, as you can see, the 1. 2 . 00 down pound isnt as strong as it was earlier in the session. We did get Economic Data that was pretty dire. Gdp contracting a most 6 , but it wasnt as bad as forecast, so perhaps a little bit of a silver lining. Germanys 10 year yield at 62 basis points. Takinglor Angela Merkel on the german constitutional courts commode is going to be a fascinating battle. Delighted to say now we are , type or jimmy dunne send her vice chair, to talk everything market really sandler vicepiper chair, to talk everything markets. Jimmy, thanks for joining. We will get to the fund in a few minutes, the first, even more fun, these markets and the federal reserve. Jay powell seemingly put to bed the idea of negative Interest Rates, but the president is going to hammer that home. Is there a chance we do see negative rates in the u. S. . Jimmy i certainly hope not. I was relieved and not surprised by chairman powells comments. Negative rates are destructive to the first principle of capitalism. It is a terrible idea. He was very gentle about it, but said it hasnt really worked in other places. Is not a good one. It is just insane. That, here, borrow money and i will pay you for it is fundamentally wrong. You have a lot of academics this cussing it, but it makes no it ison main street, and a very scary proposition that has never proven to work well anywhere. I couldnt be more against it, and i dont think the chairman will be assuaged by it all. Hes got an arsenal. He will deal with it, and the fed will do everything it can through this crisis. With rates as low as they are, they are already razor thin above zero. How will invest in banks how well our investment banks and the regional staring . Jimmy banks are really challenged at this point. As you point out, it is bad enough as it is. We have a flat, very low Interest Rate environment. Obviously a positively sloped yield curve is where banks can really perform the best, so they are going to be challenged from their income statement on basically where low rates are and have been, and is further rick situated. If it was to go negative, it would be disastrous in my opinion. We the other reality is dont know how deep and how problematic this is going to be, but we know it is going to be bad. The reality is unlike 2008, this has nothing to do with 2008. 2008 was created because there was too much credit, and not just the banks, but other lenders were really at the core and cause of the problem by this excess credit. This is just the opposite. The banks may very well be the solution to the problem. It is just that it is going to be a deep slog. The fact that you can lose i dont know, 20 to 40 Million People 22 to 24 Million People, that is just not a constructive environment. The bank stocks obviously have suffered dramatically. I am a great believer that you buy banks below book and sell them at 2. 5 times book. It is a strategy that has worked for a long time. The issue now is what is book. Obviously, i think there are real values in the banks themselves. I am not going to name which ones. It is just that youve got to reacquaint yourself that that may be the real book, and it they are idea that going to go back to book. That is not the case. The reality is this is a very difficult slog, and i think the banks could be part of the solution to get out of it, frankly. Vonnie lets try and figure out what banks are talking about through some other clues. Obviously, the last time we spoke to you was the confirmation of the Piper Sandler deal. Since then, we have had the massive bb t suntrust deal. Will there be another round of consolidation in the weeks and months to come . When you see it happening . Jimmy there will be. It has been going on really since 1978, when i first started in the business, and certainly the last 18 years. Sandler, and now Piper Sandler, has done its part to further accelerate that conversation. It will continue, but not for a while. There is little to no m a discussion going on. It is just not a focus to anybody right now. Itwill come a we get out of in three months, six months, you tell me when we are going to have a vaccine, when people go back to work, and that is why i think this notion of people that were surprised the other day when stan druck and miller r saidtan druckenmille there is not going to be av ship recovery, obviously there is not going to be a vshaped recovery. They are getting more of an answer to what the real credit issues are going to be. There will be much m a discussion. There will be a lot of discussion on raising debt, those type of Corporate Finance functions are going to be very active, and banks will bolster their Balance Sheets with that. I think there will be not so much strict equity raised, and before you see that, you will see banks cut their dividends. The banks were in very good shape coming into this, and they are in much better shape than where they were in 2008, but it is going to be a while before we see a healthy m a market return. Vonnie its also the time for certain banks to be raising cash. Financial selling all of its blackrock stake, preparing to buy any smaller competitor or even noncompetitor. Can you give us any idea of what horizontalwould, a type deal even . Jimmy theres a variety of things that can look good. I think the ceo was on record back in 2018 to say when banks get below book, then come talk to me. I think hes also said he would look to do deals comparable to the net city deal that they did in 2008. Look out on if you a relative basis, where financial stocks have gone versus where he was able to liquidate his equity position, i think it makes a lot of sense. It bolsters his capital. Hes going to be in a position to look at a variety of banks, and possibly finance type companies. I dont think they will move that quickly. I think this thing is going to be a longer slog than people think. I think having capital and not worrying about earnings is the right strategy for now in the next several months, and then we will see. This is a longer, more difficult slog than people think , there may be greater opportunities for him, but i think it makes a lot of sense. I think there are going to be a lot of opportunities over the next three to six months. But he will certainly be ready to act. Vonnie given all that youve said and your obvious outlook, along with that of many investors, why are equities so rich right now . Can push thed stock market around. It has a harder time with the real economy. Thats where the issue is. This notion of the feds got your back, just pin your ears back and buy stuff, thats dangerous because they can relief,some liquidity back i donto come know that many Business Models that operate real effectively with zero revenue for the next x amount of months, or we have 40 Million People out of work, how many will come back . Those are real issues, and i think the stock market is probably ahead of itself in certain places. Do want to ask you about this match coming up it is the match revisited, if you like. Bigger than the very first match between tiger and phil. Basically, who wins . Where do you put your money . Jimmy well, i know you probably have the irishman in mind, and i root for him every week, but i am going with the underdog. I think matt will and and ricky fowler are going to surprise some people. I think the young guys are probably practicing a little harder than the old veterans, and i think i would go with the younger guys. Know, you cant knock the veterans. Very quickly, obviously golf is the first sport where you can socially distance, and seminole im sure has been the first to reap some reward. What you see for the industry and for reopening in general . Is it going to be easy . Jimmy it is not going to be easy, and it is going to be very jagged. Not not a doctor, and i am a lawyer, so giving those two caveats, we have got to get people back to work. Weve got to get kids back to school. , ok, got to basically say lets look at the people that are most vulnerable. Are you of an age like mine or older . Are you overweight . Do you have respiratory issues . Those people need to be really careful and sequestered. They need to work from home, and Companies Need to be respectful of that and help them along the way. But they need to really take care of themselves. But the notion that we are not going to open schools in california for a year, i just dont see that as being the right answer. Maybe theres things i dont know, but i just think we have to get people back to school and we have to face this, and do it as safely as possible, but the longer this lasts, when people say we can just wait around for a vaccine, the devastation that will be done and is being done, and particularly before you go down the economic scale, i think the cure could be far worse than the problem. I dont mean to be insensitive to it. I am not a doctor. But we have got to get people back to work, and i think whether it is ohio or georgia, they seem to be taking the right steps forward. I think we have to be very careful of this being a political all, and it is really unfortunate that it is an Election Year because we need to come together and figure this out. Vonnie jimmy, thank you so much for joining. I want to let all of our viewers know that that matches on this sunday, from the Seminoles Golf Club in juno beach. Drivinge tailormade relief, and for a good cause. Coming up next, the european transport commissioner is also trying to reopening europe. How is the eu handling travel precautions . This is bloomberg. Vonnie live from new york, im vonnie quinn. This is bloomberg markets. The European Commission unveiled a set of recommendations for eu countries. The guidelines cover everything from the removal of internal eu border restrictions to Health Measures for hotels. For more, lets bring in adina valean, eu commissioner for transport, and she joins us from brussels. How do you deal with each country trying to reopen on its own timeline, and yet a European Union and European Commission trying to come up with broad guidelines for every country . You should know that all of the number states would like some guidance from the European Union because we had the experience when the lockdowns started to loom that the lack of coordination brought a lot of congestion and issues across borders. So now everyone is looking to us to say what rules should be but in place . When are we going to open up . But the ultimate decision, because everyone is asking when, it relies on the member state. That is because the epidemiological situation in each memory state is so theerent, so it is up to authorities at the European Center for Disease Control to decide when they open up. What i can do, and what we are doing, is say that when you open up, these are the rules you should put in place for your transport mode so that people will feel safe to travel by plane or train or buses or whatever. Of course, it is a nobrainer, but it is good to have in place coherent and equivalent rules all over europe because we are a central market, and we really want to have the same rules in. Lace all over Member States vonnie tourism makes up a good portion of gdp, depending on what country we are talking about. How much of the 2020 Summer Season do you think could . Ossibly be salvaged in tourism ms. Valean of course, we are European Countries and there are tourist destinations that will be more eager to open up. That are are others not quite stable yet. Is a difference between Member States regarding the speed they would like to open up. But i think we are going to witness an opening this summer because i have noticed, i have witnessed already that it is a slow start and reopening withnations, and i think our recommendations put forward in minimal rules to be observed, for the hotels, for , some will be more encouraged to open up for tourism purposes. Vonnie how concerned are you and your colleagues about a resurgence of the coronavirus if you do indeed lift restrictions or allow countries to continue with their restriction lifting . Well, here it is hard to say. Of course, we are worried overall with the situation, and the fact that we do not have a vaccine or a treatment puts a lot of burden on the decisions to be taken. By the other hand, we are observing what is going on, how things are evolving, and until we have a vaccine or a treatment, i think we have to learn to live with the virus. We have to learn to travel with the virus. So for some other purposes, we have learned to observe more security features. How travel by plane looks nowadays and how it looked 20 years ago, it is much more different. But with some rules in place to limit and minimize the risks, people will learn how to protect themselves and continue to do the Economic Activities or the travel or leisure activities with more precaution, and i think it is a learning exercise. We will learn to live with that, and at some point we can go to more freedom in how we relate ourselves to this issue. The problem is a lot of people dont get to live with it, so i am curious about transportation. There are a lot of proposals going on. Youve talked about distance between passengers where feasible, but if these vessels have air conditioning, does it matter if the middle seat is empty . Does it matter if airlines leave a row empty . Arent those passengers putting themselves at the same risk as if they were on a full airplane . Vonnie ms. Valean well, when we developed guidelines, we spoke with all stakeholders, including the industry, which is producing the aircraft or transport vehicles. Tried to understand and discuss as experts how are the features inside of these, and what would be necessary. That is why in the end, we are seeing where a mask. Use your disinfectant for your hands. Aircraft are a bit different from the other transport vehicles because in aircraft, providing of safety features on board, they will have very strong air filtering systems, hospital grade. It differentiates them a bit from other modes. But nevertheless, keep a distance. Where your mask. It would say first, where your wear your mask. And when possible, keep a distance. Vonnie thank you. That is commissioner adina valean, European Commission transport commissioner. This is bloomberg. Vonnie lets took a look at where we are u. S. Markets wise now. Py has been a very whip week so far. The s p is down more than zero point 5 . In europe, we had some really negative gdp data out of britain. We also had some other decisions, for example, by the german constitutional court, that it was going to continue its fight with the ecb. Chancellor Angela Merkel getting involved now. We see reaction to that end earnings and the dax and other European Equity indices, which have the stoxx 600 down 1. 6 . Blackrock up 4. 7 . Pnc buying its pnc selling its stock. Blackrock buying some of it back. Crude lower. We get inventories in about 40 minutes. We will also speak with the casper ceo. This is bloomberg. Vonnie live from new york, im vonnie quinn. This is bloomberg markets. We are awaiting this weeks crude Oil Inventory numbers. This may be the week where the issue at cushing turns, and we might start seeing the end of the supply shortage of places to put the oil into the markets. Economists are looking for a build of 4. 3 2 Million Barrels. We will see if we get that. Obviously, we are not getting that. We are getting a drawdown of nearly 800,000 barrels. 745,000 barrels of a drawdown. Cut after we saw today opec its demand picture by 3 Million Barrels a day, but look at that. This may be the beginning of the end of the Storage Capacity issue playing out. We are seeing a drawdown in place of a build. We will continue to follow oil throughout the day, but lets get to our muni moment now. Ears taylor riggs. Here is taylor riggs. Taylor thank you. Going me is the head of fixed income at Neuberger Berman. Really curious about how the pandemic and the expected massive budget deficit is changing the way you are thinking about credit selection as you look across what has now become a vastly different environment. Guest great to speak to you, taylor. I think you have to completely rethink how you approach the market right now. Quality is the thing that is absolutely going to win out, so focusing on the highest quality bonds because in, commonly like this because in an economy like this, no credit across fixed income is going to be immune from credit pressures. What we are doing at Neuberger Berman is looking at existing investments in thing again about new ones, and saying, how do we underwrite them for this new environment . I think quality is the way to go right now. What is interesting, if you look at 10 year high quality munis, they are yielding almost 170 of treasuries pretax. I think when you see yields like that, despite potential beatility, that is going to an appealing proposition for a lot of investors. Taylor are you able to get the yields you just mentioned that we havent been able to see in years in the muni market . Or are you going down a little bit to the lowest quality still within the investmentgrade spectrum . Jamie i think the whole market has repriced, and to your point, the lower quality Investment Grade bonds breads have moved out a lot. I think you have to be cautious there. You have to have the right type of investor or vehicle to play in that part of the market. But i think for most individuals , there are a lot of unknowns right now if you just play the quality parts of the market. You can find those yields and ratios i just described. It may take a little longer to get invested, but i think we are in a world right now where cash is king, and if you just really play it cautiously, investors are going to have a really good outcome in this market. Taylor within the Corporate Bond market, fallen angels have become a real risk. Bbbs beome of the downgraded into junk territory. Is that a risk you see in the muni market . Jamie if you look at the bbb part of the market, obviously illinois the big name. Theres a lot of health care credits. Certainly a possibility that you could see some names in that category move down. I think the good news about muni credit quality is it tends to move in a bit more of an incremental manner, so it gives investors time to assess and decide if they want to keep holding bonds. Illinois is an interesting one. Again, not for everybody, but when youre talking about yields is ang close to 6 , that lot of compensation for a statelevel credit. So it really comes down to investors overall risk tolerance, and whether they think they are getting paid appropriately for the ride on some of those names that may be a bit more bumpy. Taylor finally, how is Retail Sentiment . We have seen inflows now come back to the market. Is that a healthy sign . Very i think it is a healthy sign. We have a thesis here that when things calm down, there is going to be a global search for high quality yield. Munis are a great asset class to sit that will, and i think for investors that want to hunker down a little bit, play it safe with a big part of their asset allocation, munis really work well, and that is why you are seeing Retail Sentiment improved so much. In, thank you isel for joining. Vonnie taylor riggs, thank you for that. Federal reserve chairman jay powell spoke with adam posen at Peterson Institute in washington this morning. He pushed back against negative Interest Rates, and urged fiscal and Monetary Policy makers to rise to the challenge or face unprecedented downside risks. Joinedout it now, we are to talk about it now, we are joined by michael mckee. The question going into this was what with the fed chair say about the possibility of negative rates. He seemed to dismiss it out of hand. Michael it is no longer on the table. It never was on the table, he said. They dont rule anything out completely, but he did throw an awful lot of cold water on the idea, pointing out that the last fed meeting, every member of the fed discussed it and said they dont like it. It really doesnt stimulate the economy. It hurts the Banking System badly. It would mess up the money market system that funds american companies. It would hurt savers. Nothing really good about it. The fed trying to pound a stake into that vampire. It doesnt look like from the futures trading that the vampire is quite dead, but right now there doesnt seem to be any hope for that idea. Vonnie one thing he did say was that the economy should get back to where it was at some point, may be not immediately, but he seems to express a lot of optimism. Was that also for the market, or does he really believe that . Michael generally, the reaction to this space what this speech was that it was pessimist. He said we face a lot of downside risks. At some point we will get back to where we were, and he did say we will probably see the peak in unemployment in the next month or two. We could see a fairly rapid decline from the peak once the economy reopens, but then it is going to level out, and it would take years to get back to where we were. In his view, we have the kind of risks that the economy could, and a longterm sense, be handicapped by business bankruptcies, companies not being there, and the idea that if you are out of work for a long time, it erodes your skills. There may be more companies that cut back on investment, so productivity falls, and then salaries stagnate. He doesnt see a very good future ahead, which is one reason he was pushing congress to do more on the physical side on the fiscal side. Vonnie the point was if we get in there fast, big we could fast, maybe were could avert some of those dire scenarios. Do we have to worry about disinflation, and even deflation . Michael he didnt directly the last timebut he spoke, jay powell said they dont expect deflation. That would be a concern that would call for additional policy response. The numbers we have seen so far dont suggest that is actually going to happen, at least not in the data yet. Vonnie michael, thank you, as always for urinalysis analysis break breakdown. Coming up, philip krim always for your analysis and breakdown. , casperp, philip krim ceo. This is bloomberg. Vonnie live from new york, im vonnie quinn. This is bloomberg markets. Shares of Mattress Retailer casper are higher now, but had fallen after sales growth fell short of expectations. Joining to discuss whats ahead is caspers ceo philip krim. Congratulations on a very difficult quarter. Im curious as to what your outlook is that you can give me, any kind of visibility at all. Casper did improve in the quarter in terms of growth, but not as much as its peers, quite frankly. What can he do about that . What can you do about that . Philip thanks for having me on. We have been pleased with the Business Performance in 2020 so far. Growthed about quarterly. We saw ecommerce growth up 35 yearoveryear. Overall business was up 15 yearoveryear in april, despite our Retail Stores closed. As far as the outlook goes, it has been great to see real strength in our e, shen digital business. We have also seen real category strength. Consumers are focused on getting a good night of sleep as part of being healthy, and a lot of those shoppers looking for mattresses and pillows and a great night of sleep are going online now to do their research, and that is all playing to caspers strength. We have led this industry moving into ecommerce, moving digital, and that is all going to be accelerated based on consumer trends. That is our outlook, and nothing it plays to what casper has been focused on since we start the company. Vonnie absolutely, and you are out in front of many of your current competitors, but it is difficult to watch the likes of dople and even sleep number better. What can you do to differentiate from them . ,hilip sleep numbers growth they are a retailer that is very store based, and they have over 500 stores, and their business is down appreciably now. Purple is doing well, and we think thats great. We think the incumbent brands in this space that have been around for a long time just lack residents just like resonance with consumers. That is why you see the leading brands like casper and purple taking share. So we are not focused on what purple is doing, that we think they are doing great. Really, you are seeing continued acceleration of the incumbents losing share and new entrants who have difficult you have digital capabilities, and that is going to be a story for our industry for years to come. Vonnie you mentioned Retail Stores, and you do have some. I am curious on whether you are planning on reopening all of them, and when you might see that being. Philip we are going to start reopening stores here in may, really a geography by geography question. We have stores throughout the u. S. And canada. We are looking at government guidelines on a location by location basis, and we will start to open up some of those doors here in may, and accelerate that into june. We will learn a lot as we reopen doors, and that will drive reopening all of the stores that we had in q1. Vonnie what kind of supply chain issues have you been having during the pandemic. Have you had to change any of your logistical protocols in order to work around the supply chain difficulties . Philip it is a great question. We have been very focused on managing deep throughout supply chain. We have been of the business and that we havent seen any real interruptions in our ability to deliver products to our customers, and that even despite a surge in demand above what we had expected, we feel like our supply can continue to perform and allow us to deliver our products. We are seeing some benefit just in a lower commodity world right now, our Logistics Providers and things like that, we have been very focused on making sure that we have the capacity available, and we are also seeing cost benefits come into the business as well. Vonnie you did have a longterm 15 operating margin target. Some analysts viewed it as a little aspirational already. What is your target for operating margins . Philip we still are focused on 50 plus for the profit margins, and we are well on track there. That is what the team has been focused on as well. Vonnie you mentioned that you have had to make some changes, but there might be some advantages as well. Can you let us know what those advantages are . What has become cheaper in this environment . Philip we have advantages and how we are able to service our customer. Casper really pioneered this omnichannel approach. What we are seeing with a business as dynamic as casper is we are able to move our operations and Capital Allocation based on wherever customers are shopping. That is why we have seen real strength in our digital business. We have also seen marketing expenses come down. Toare seeing great benefit Customer Acquisition costs within our ecommerce channel, and we are continuing to grow our business, which allows us to drive cost out of our supply chains. With oil where it is, we are seeing benefits to logistics costs. So we are seeing our ability to continue to drive our path to profitability and work with where we are positioned at this point. Vonnie you have had to prune and trim. Did unfortunately have to cut 1 5 of your corporate staff, and you have closed operations essentially in europe. Do you anticipate any of those jobs in the u. S. Coming back, or looking at europe again sometime in the future . When might that be . Philip we do take the approach of plan for the worst and hope for the best, and so far, demand has been stronger than we had anticipated. We are very conservative with how we approach the business. We did produce our we did reduce our corporate payroll by 20 earlier in april. We also took some additional costs out and announced that we were exiting our european business. Right now, we are looking at overall consumer demand. We are excited to open our stores and get our retailers back to work. We will look at our overall pace of hiring as we learn more and as the year progresses. We are still hiring at casper, and we would continue to build the team here. Vonnie theres a lot of chatter these days about the concept of discounting and how much of that should go on in the coming months as retailers get back to business. How much are you depending on discounting . How much do you want to be depending on a Going Forward . Philip discounting is part of the playbook for our industry. It is part of the playbook for casper. It is something i think we have been very focused on testing for a number of years now, and i am sure discounting will be a big part of the industry and are playbook Going Forward. I will say in this environment, strong brands went out and strong brands dont have to match discounting. I think that is something that will bode well for casper. I think you will see discounting throughout a lot of retail. The stronger retailers who can provide what customers are looking for, which is a great digital experience, a great brand, a great product will have strength throughout this period. Vonnie given that we are going to see a round of consolidation in several Industries Post this pandemic, any chance you and a competitor might look at each other and think about getting together . Philip no comment on what we are thinking, but i do think you are going to see a lot of distress in our overall industry , and i would expect consolidation to happen broadly. Vonnie thank you. Casper ceo philip krim joining us there. Time now for stock of the hour. Here is taylor riggs. Taylor todays stock of the hour is the shipping containing company maersk, the Worlds Largest container line, slumping about 6 this morning after warning of a 25 drop in volume. I want to flip the board and take a look at how that is impacting Topline Revenue growth. It could be dropping by as much as 9 . As expected with most companies, youre getting a bigger drop in the Second Quarter, a small rebound in the Third Quarter, but still the Second Quarter looking much worse, and the Third Quarter only improving by a little bit. I want to flip the board and take a look at a chart here inside the terminal. The cost of shipping Raw Materials and containers fell. R. B. I. Analysts came out saying leveraged tos more rates rather than volume. Shipping costs have fallen a lot, too. That is pressuring the company. Flipping up the board again, maersk is underperforming the benchmark brought shipping index. This is a company that controls about 1 5 of the global fleet, used to transport goods by see. In reaction, the company is saying they are going to be taspending their 2020 ebi guidance. They are also announcing their plans to cut capex by about 2 billion or so. Finally, they will look at transforming this company into a logistics integrator. That will have to take a backseat as they have to now focus on the impact of tackling some of the challenges presented by the coronavirus. Vonnie thank you, taylor riggs. Still ahead, saudi arabia and russia see signs that oil demand is recovering as countries around the world start to ease lockdown. This as opec decides it is absolutely not. Futures in focus next. This is bloomberg. Vonnie live from new york, im vonnie quinn. This is bloomberg markets. Time for futures. Joining me is Phil Streible of Blue Line Futures. We did get a drawdown that the markets were seeping early were secretly hoping for. Is that a sign that storage issues might be winding down . Phil i dont think so at all. You could see how shortlived the rally was. We had already retested the low coming back into that inventory report. The problem is the supply demand structure on oil right now is not supportive of higher prices at all. The drillers and pumpers are facing a string of losses and bankruptcies. That is going to reduce supply going 36 months out going three to six months out. If you look at that contract, i forget is going to continue to weaken, but drag down the december contract. We can already see decembers trading right around 30 at the moment, and that market is really weighing in. If you threw down some of that ended in tory that even if you drew down inventory even if you drew down inventory, there is still oil floating around, looking for a home. It just doesnt see any pickup and demand in the nearterm. Vonnie and then we had opec downgrading its demand outlook by another 3 Million Barrels a day, even as saudi arabia and russia say they actually see green shoots in demand around the world. What is the real story . Is it just that we dont know because of coronavirus . Phil you are going to need to see a pickup in a lot of different areas. Small green shoots would be if people, if the shelterinplaces are lifted. 50 of oil demand is road demand. People driving around. That will be the first thing to come back. If you go to aviation and people start flying again, that is about 7. 8 . Cruise ship sent things like that, that is another 10 . So it is an industry case on how oil comes back in the demand structure. Vonnie are we worried about treasuries . We have seen this range for the longest time, even as we continued to get direct Economic Data showing disinflation. Points,ear at 65 basis is it about right . Phil i believe Interest Rates have a strong possibility of going never get of going negative. They are saying treasuries are not a concern at all. I believe that if things get worse, you are going to see that negative Interest Rate, and that is where i think gold, silver, they will start to benefit. Vonnie thank you for that. That is Phil Streible of Blue Line Futures with futures in focus there. Coming up, i will be speaking with david riley, Bluebay Asset Management chief investment strategist. Lets have a look at where markets are right now. A choppy week for u. S. Equities. We are seeing a down day for two of the three majors. The nasdaq, at least, is up a bit. This is bloomberg. Vonnie live from new york, im vonnie quinn. Guy johnson is off today. We are counting you down to the european close this wednesday on bloomberg markets. Lets check european markets now. It is a down day across the globe. Economic data at the u. K. That i damper on things there out of the u. K. But i dampener on things there. We did see the british pound rallying for just a little bit. It has erased that rally now, down versus the u. S. Dollar at 1. 2225. The german 10 year yield at 52 basis points. German chancellor Angela Merkel going to respond to the german constitutional court, which came out very strongly and suggested that the ecb is not within its mandate, or at least needs to prove that its mandate includes buying bonds. This is another member of the court now with an